Crypto and the bank: can you simply deposit your crypto profits into your Belgian bank account?
- Aeacus Lawyers
- Jul 17
- 4 min read
With the rising popularity of cryptocurrency and the current bull run, we're seeing an increase in inquiries from investors who want to cash out (part of) their profits and transfer them to a Belgian bank account. In practice, however, many clients encounter obstacles when depositing these funds into their bank accounts. Why does this happen, and how can you prevent it?
In this article, we discuss why banks perform these checks, how you can prepare, and why a good file is crucial.
Why banks are so cautious with crypto: the KYC obligation
Banks are subject to Know Your Customer (KYC) obligations, a core principle of anti-money laundering (AML) legislation , as established by the law of September 18, 2017. These obligations are intended to prevent the financial system from being misused for money laundering, terrorist financing, and other illegal activities. Article 8 of the law obliges financial institutions to:
Checking clients and transactions : Banks need to know who their customers are, the origin of the money, and whether transactions comply with the law.
To maintain internal oversight : This includes risk management models, internal procedures, and checks for suspicious transactions.
For banks, this means that every deposit or transaction deemed suspicious will be further investigated. This reluctance is often greater with cryptocurrencies, as the origin of the funds is not always clear.
Why banks are asking questions about crypto transactions
Unfortunately, crypto is still often associated with fraud, tax evasion, and money laundering. This is, of course, unjustified in most cases. The traditional financial system remains the most widely used system for criminals worldwide.
Nevertheless, it's a reality that banks are often hesitant about the use of crypto and investments in it. When significant amounts are deposited into a bank account, especially if they originate from crypto platforms, banks will almost always ask questions. Common questions include:
When did you start investing?
What is the source of the original invested funds? Evidence, such as bank statements or other documents, is required.
Have you complied with tax regulations? For example, have you correctly declared foreign accounts and whether the income has been included for tax purposes?
How many trades have you made, and what is the value of your portfolio? In some cases, the bank even asks for details about your realized profit/loss and an overview of all transactions executed on crypto exchanges.
Banks want to ensure that the funds deposited into your bank account do not originate from illegal activities. If the bank has any doubts about the legality or justification of the transaction, it may be obligated to report it to the CFI (Financial Intelligence Processing Unit), the Belgian anti-money laundering unit. Such a report is made completely confidentially, without informing the client, and can lead to an investigation by the tax authorities or, in some cases, a police interrogation. A well-documented and clearly substantiated file is therefore crucial.
Experience shows that proactively informing your bank about upcoming deposits can alleviate many concerns. Demonstrating transparency and a well-prepared file increases the likelihood that your funds will be accepted by the bank.
A tax ruling can also speed up the process at a bank. Based on this ruling, you can demonstrate that the tax authorities are aware of the existence of these crypto profits and their tax treatment. This allows the KYC and AML checks to proceed (normally) more quickly. Of course, a complete file remains essential in any case.
the use of revolution
To avoid the complexity of more traditional banks, we see many clients opting for alternative solutions, such as a (foreign) bank account with Revolut .
Revolut generally offers a more flexible approach and appears less restrictive when converting cryptocurrencies to fiat. Many investors use these accounts as an intermediate step to subsequently transfer funds to their Belgian bank account.
While this may seem convenient at first, transactions from a Revolut account to a Belgian bank account can also be flagged . Belgian banks often ask the same questions about the origin of the funds in these cases, especially if significant amounts are involved. Therefore, using a Revolut bank account doesn't guarantee you'll avoid inquiries from your (Belgian) bank.
In some cases, transactions through Revolut can even raise additional suspicion. Therefore, banks continue to comply with their legal obligations here as well and require the same transparency and documentation as for direct deposits.
Conclusion: Cashing out crypto profits requires preparation
Achieving crypto profits is just the first hurdle. A second, and often more complex, step is actually receiving these funds in your bank account. Banks have legal obligations to verify the origin of these funds, and without proper preparation, they may block deposits or ask additional questions.
A well-prepared file with transparent information about your investments and tax compliance is therefore crucial. Proactively contacting your bank and answering their questions before the actual transfer can prevent many problems.
At Aeacus Lawyers, we have extensive experience preparing KYC files and conducting compliance checks. We're happy to help you overcome any obstacles to cashing out your crypto profits. Contact us for professional advice and guidance.
Do you have questions about your specific situation, have you received questions from your bank regarding crypto deposits, or are you planning to deposit a significant amount into your Belgian bank account in the near future? Schedule a no-obligation meeting using the button below. During this meeting, we'll discuss your specific situation in detail, and you'll immediately receive our initial insights and tips.
If you have any other questions about crypto, be sure to check out our Frequently Asked Questions (FAQ)
Christophe Romero Senne Verholle
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